(demb 11) assignment - 1, dec - 2014. … · (demb 11) assignment - 1, dec - 2014. executive m.b.a....

(DEMB 11)

ASSIGNMENT - 1, DEC - 2014.

EXECUTIVE M.B.A. DEGREE EXAMINATION

First and Second Years

Paper – XI : BUSINESS POLICY AND STRATEGIC MANAGEMENT

Maximum : 25 MARKS

Answer ALL questions

1) a) Board of Directors.

b) Strategic planning.

c) Forces of competition.

d) Strategy evaluation.

e) BC G matrix.

f) Diversification.

2) What are the techniques used in organisational analysis?

3) State the issues in the implementation of strategies in marketing.

4) Examine the steps involved in the formulation of strategy at the business unit

level.

———————

(DEMB 11)




Paper – XI : BUSINESS POLICY AND STRATEGIC MANAGEMENT

Maximum : 25 MARKS


1) Describe the role of Board of Directors.

2) ‘Organisations respond to environmental uncertainty, complexity and

dynamism’. Comment.

3) State the advantages of acquisitions as a means of diversification over others.

4) Chocolate Makers ‘Hershey’s Ine, USA and ‘Ferrero SpA, Italy are

considering a joint bid to buy out’ Cadbury Plc, which could help the British

confectioner tend off a hostile take over by Kraft. Foods Inc, USA this move is

the strongest sign of a possible rwal bid to Kraft’s $ 16.7 Billion offer which

Cadbury rejected and said was "derisory".

Parallely Ferrero could join financial investors and private equity players

considered friendly to cadbury, for a possible alliance. With this proposal, the

advantage for cadbury shareholders is that they would continue to hold shares

in a high growth confectionery group having UK listing rather than being paid

around 50% equity in a low growth US listed conglomerate having a turn over

of $ 11.7 billion a year. Ferrero, has an annual sale of $ 9.3 billion with 18

factories and 21600 employees worldwide. It is also known for its Kinder

‘Chocolates and’ ‘Tic- Tac’ candy.

Questions:

i) Explain ‘intensive’ and ‘integrated growth strategies’ adopted by these

conglomerates.

ii) Explain the five types of competitive advantages pursued by Hershey's

and Ferrero, while formulating their strategic plans; and

iii) Why do companies resort to hostile bidding ?

————————

(DEMB 12)




Paper – XII : INTERNATIONAL BUSINESS

Maximum : 25 MARKS


1) a) Scope of international business.

b) Anti-dumping.

c) Cross culture.

d) Negotiations.

e) LDCS.

f) SDRs.

2) Bring out the role of regional cooperation in international trade.

3) Critically examine the theory of mercantilism.

4) State the relevance of subsidy in international business.

———————

(DEMB 12)




Paper – XII : INTERNATIONAL BUSINESS

Maximum : 25 MARKS


1) What are the advantages and disadvantages of MNCs?

2) Enumerate the contribution of WTO to international business.

3) State the difficulties encountered in HRM by MNCS.

4) The Star Corporation is a Hong Kong manufacturing firm that is going to do

business in mainland China. The company’s contract with the Chinese

government calls for it to supply technical know-how and machinery for

producing consumer electronics. These products are not state of the art, but

they will be more than adequate for the needs of the Chinese consumers. Star

has agreed to sell the Chinese its plant, which was being closed because it was

no longer competitive.

The Chinese will pay to move all the machinery and equipment to their

country and install it in a factory that is currently being modified for this

purpose. The two will then become partners in the venture. Star will provide

the management and technical expertise to run the plant, and the Chinese will

provide the workers and will be responsible for paying for all the output. Star

will receive an annual fee of $ 3 million and 5 percent of all sales.

The Star management is very pleased with the arrangement although they are

of Chinese descent, they have lived in Hong Kong all their lives and know

relatively little about doing business either with or in China. To provide Star

with the necessary information and assistance, a native of China, educated

there but living in Hong Kong the past 5 years, was brought in. The individual

told the company the following facts about China:

Chinese managers do not plan. They are usually told what to do and they do it.

Planning is handled by others and simply passed on to them.

Chinese managers are not concerned with profit or loss. They simply do their

jobs and let the government worry about whether the operation is making

money.

No rewards are given to workers who perform well; everyone is treated the

same. If there is no work, the workers are still paid, although they may not be

required to come to the factory.

There is a basic aversion to individual decision making; most decisions are

collective efforts.

The current government of China would like its managers to learn how to run a

profit oriented operation and eventually eliminate the need for foreign

managerial assistance.

When outsiders tell Chinese how to do things, they have to be careful not to

insult or offend the Chinese who are often sensitive about the way they are

treated.

Questions:

a) What selection criteria would you recommend to Star when deciding

whom to send to China?;

b) What procedures should the company use in making the final selection?;

and

c) What type of repatriation agreement would you recommend the firm use ?

——————

(DEMB 13)




Paper – XIII : MANAGEMENT INFORMATION SYSTEMS

Maximum : 25 MARKS


1) a) Hardware

b) Data filing

c) Computer networks

d) Distributed environment

e) Time sharing

f) Features of MIS

2) What are the foundations of MIS?

3) State the steps involved in the analysis and design of system.

4) Assess the importance of computer network system.

———————

(DEMB 13)




Paper – XIII : MANAGEMENT INFORMATION SYSTEMS

Maximum : 25 MARKS


1) Bring out the future trend of DBMS.

2) Describe the basic network topologies.

3) Elucidate the applications of information technology.

4) Recent surveys by Gartner Group and Forrester research show that CIOS over whelmingly

favour finance as their top priority for business process reengineering and that financial

information systems can become invaluable decision support systems.

There are many reasons for the growing interest in developing financial information systems

and using them to achieve business goals. First, many financial system are aging because

finance was one of the first functions to be automated in companies. Hence, many venerable

accounting and financial systems are now in desperate need of redesign and rebuilding

second, more and more managers need financial information to make decisions concerning

every aspect of the business, from choosing a marketing campaign to developing new

products. But that information is not always reading available or complete and many

financial reports are in summary form, insufficient to meet management’s need for detailed

information.

At Viacom International, the New-York based parent of MTV, Nickelodeon and other

entertainment interest, the CFO teamed with executives from sales, marketing and

contracting to lead the company new directions. Because financial processes are so

intertwined with the processes of other departments, top managers felt that redesigning

finance should ideally be part of a company wide, comprehensive reengineering project.

Although some turf wars were inevitable executives involved in this large-scale efforts to

reorganize the Company were persuaded to support cross-departmental process change

viacom targeted its financial system to find a better way to handle the financial reporting of

its wholly owned subsidiaries which it is acquiring at the rate of about three every year.

Another goal in rebuilding the financial application was to eliminate the Company’s

dependence on paper, particularly the financial transaction which often involve re-keying,

rechecking and doing accruals. The company plans to develop a systems which reduces

paper pushing and facilities the electronics transmission of transactions from one decision

maker to the next. Another goal of the Company is to build financial systems that give

decisions makers time to analyze data rather than spending their time collecting it.

Questions:

a) Identify the reasons why financial information systems are excellent tools for facilitating

decision making; and

b) Explain why financial information systems were at the centre of initiating change at Viacom.

——————————

(DEMBB 1)




Group B — Financial Management

Paper – I : SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Maximum : 25 MARKS


1) a) Industry analysis

b) Rolling settlement c) SML d) Income fund e) Investment risk

f) Odd- lot theory

2) State various channels available to an investor to invest his funds in the

stock market.

3) Explain various approaches available to value securities.

4) How are stock exchanges working in India?

———————

(DEMBB 1)





Paper – I : SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Maximum : 25 MARKS


1) How are charts interpreted in technical analysis?

2) Describe the methods of evaluating portfolio risk.

3) Critically analyse the capital market theory.

4) What is the optimum portfolio in choosing among the following securities

and assuming Rf=5 percent, and σ2m = 10 percent?

Security Expected Return Beta σ2ei

A 15 1.0 30

B 12 1.5 20

C 11 2.0 40

D 8 0.8 10

E 9 1.0 20

F 14 1.5 10

——————

(DEMBB 2)





Paper – II : FINANCIAL MARKETS AND DERIVATIVES

Maximum : 25 MARKS


1) a) Concept of money market.

b) Trade bills.

c) Depository participant.

d) Interest rate futures.

e) Interest rate derivatives.

f) Hedging.

2) State the reforms introduced in the capital market.

3) What are the powers of SEI?

4) Bring out the functions primary market.

———————

(DEMBB 2)





Paper – II : FINANCIAL MARKETS AND DERIVATIVES

Maximum : 25 MARKS


1) Explain the growth of financial derivatives.

2) Describe the trading strategies followed in option market.

3) What are various motivations underlying swap contract?

4) Consider the following data:

Stock price = Rs. 50.

Months to expiration = 3 months.

Risk-free rate of Interest = 10% p.a.

Standard deviation of stock = 40%.

Exercise Price = Rs. 55.

Option type = European Call.

Calculate the value of call option as per block scholes model.

———————

(DEMBB 3)





Paper – III : INTERNATIONAL FINANCIAL MANAGEMENT

Maximum : 25 MARKS


1) a) Exchange rate quotation .

b) Multilateral meeting.

c) Concept of international financial management.

d) Spot market.

e) Transaction exposure.

f) Global cost of capital.

2) What are the economic factors that affect balance of payments?

3) Explain how options are used to cover exchange risk with examples.

4) Bring out various international financial institutions?

———————

(DEMBB 3)





Paper – III : INTERNATIONAL FINANCIAL MANAGEMENT

Maximum : 25 MARKS


1) How does international capital investment decision differ from domestic capital

investment decision?

2) Will coordination of economic policies make exchange later more or less

stable?

3) How can a centralised cash management system be beneficial to an MNC?

4) Given the following data about the cash requirements of an MNC and its affiliates:

Location Mean expected Standard Cash needs deviation (Rs. Crore) (Rs. crore)

Parent 350 50

Affiliate X 75 15

Affiliate Y 120 34

Affiliate Z 95 25 Assuming that the MNC wishes to insure that all cash needs of the parent and

affiliates can be met on time.

a) How much cash would be needed by each entity under a decentralised cash

management system? ;

b) How much savings would accrue from a centralized system? Show how these

savings are possible.

–––––––––––––––––

(DEMBB 4)





Paper – IV : MANAGEMENT OF FINANCIAL SERVICES

Maximum : 25 MARKS


1) a) Smart card.

b) Broking services.

c) Features of financial services.

d) Project financing.

e) Second stage financing.

f) Reserve money.

2) Explain the methods employed to manage risk in financial services

3) Bring out the regulations relating to mutual funds.

4) When does merger make sense?

———————

(DEMBB 4)





Paper – IV : MANAGEMENT OF FINANCIAL SERVICES

Maximum : 25 MARKS


.

1) Critically evaluate the working of CRISIL.

2) Give an account of services rendered by insurance companies.

3) Explain the services rendered by merchant banks.

4) A firm wishes to let on lease a machine costing Rs. 1 lakh financed 75%

through debt and the balance through equity. Pre-tax explicit cost of debt is 18%

and that of equity is 15% per annum.

The firm has an effective tax rate of 45% and can claim 25% on WDV

method. The residual value of the machine is Rs. 15,000 at the end of 5th year.

The lessor has to spend Rs.2000/- per year towards maintenance of machine and

administration. The lessee agrees to pay annual year-end rent of Rs. 35,000 for 5

years; security deposit of Rs. 1000/- and one-time management fee of Rs.

1000/- at the beginning of the lease. Is the above plan beneficial to the lessor?

———————

(DEMBB 5)





Paper – V : PROJECT MANAGEMENT

Maximum : 25 MARKS


1) a) Financial Profitability.

b) Cost over runs.

c) IRR.

d) Project idea.

e) PERT.

f) Data Vs information.

2) Explain the process of organising technical analysis

3) What are the stages involved in Project formulation?

4) Give an account of equipment used in project planning.

———————

(DEMBB 5)





Paper – V : PROJECT MANAGEMENT

Maximum : 25 MARKS


1) How do evaluate economic viability of a project.

2) Explain the HR required in the formulation of project.

3) How do you review the project?.

4) Project consisting of eight activities has the following characteristics: Activity Preceding Time estimates (in weeks) Activity Optimistic Most likely Pesimistic

A None 2 4 12

B None 10 12 26

C A 8 9 10

D A 10 15 20

E A 7 7.5 11

F B, C 9 9 9

G D 3 3.5 7

H E, F, G 5 5 5

i) Draw the PERT network for the project. ;

ii) Determine the critical path. ;

iii) If a 30 week deadline is imposed, what is the probability that the project

will be finished within the time limit? ; and

iv) If the project manager wants to be 99% sure that the project is completed

on schedule data, how many weeks before that data should he start the

project work? (area of normal curve between Z=0 and Z=0.41 is 0.1591

and the value of Z which covers 49% of area is 2.33)

–––––––––––––––––

(demb 11) assignment - 1, dec - 2014. … · (demb 11) assignment - 1, dec - 2014. executive m.b.a....

Documents